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Integrated Research Limited
Appendix 4D
Half year report
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Appendix 4D Half year report
Name of entity
INTEGRATED RESEARCH LIMITED
ABN Reporting period Previous corresponding
(year ended) period (year ended)
76 003 588 449 31 December 2015 31 December 2014
For announcement to the market Extracts from this report for announcement to the market
A$000
Revenues from ordinary activities Up 18% to 39,373
Profit after tax attributable to members Down 18% to 6,205
Net profit for the period attributable to members Down 18% to 6,205
Dividends (distributions)
Amount per
security
Franked
amount per
security
Interim dividend 3.0¢ 55%
Previous corresponding period 3.5¢ 35%
Record date for determining entitlements to the dividend 9 March 2016
Date the dividend is payable 20 April 2016
Dividends consist of no conduit foreign income
Brief explanation of results
Please refer to page 2 ‘Review of Operations’ for an explanation of the results.
This information should be read in conjunction with Integrated Research Limited 2015 Annual
Report and Consolidated Interim Financial Report for the half-year ended 31 December 2014.
The information provided in this report contains all the information required by ASX Listing Rule
4.2A.
NTA backing
December
2015
cents
December
2014
cents
Net tangible asset backing per ordinary security
8.21
10.34
Dividends
December
2015
$’000
December
2014
$’000
55% franked interim dividend of 3.0 cents per share
payable on 20 April 2016 (prior period: 35% franked
dividend of 3.5 cent per share).
5,113 5,938
Total dividends provided for or paid 5,113 5,938
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INTEGRATED RESEARCH LIMITED AND
CONTROLLED ENTITIES
FOR THE HALF-YEAR ENDED
31 DECEMBER 2015
ABN: 76 003 588 449
ASX CODE: IRI
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Table of Contents
Directors’ Report 1
Condensed Consolidated Interim Financial Report
Condensed Consolidated Statement of Comprehensive Income 4
Condensed Consolidated Statement of Financial Position 5
Condensed Consolidated Statement of Changes in Equity 6
Condensed Consolidated Statement of Cash Flows 7
Notes to the Condensed Consolidated Financial Statements 8
Directors’ Declaration 12
Auditors Independent Declaration 13
Independent Auditor’s Review Report 14
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INTEGRATED RESEARCH LIMITED
HALF-YEAR ENDED 31 DECEMBER 2015
1
Directors’ Report
The Directors present their report together with the consolidated financial report for the half-year ended
31 December 2015 and the review report thereon. Directors
The Directors of Integrated Research Limited at any time during or since the end of the half-year are:
Name Date appointed as a Director
Non-executive:
Stephen Killelea (Chairman) August 1988 (appointed Chairman July 2005)
Alan Baxter June 2009
Peter Lloyd July 2010
Garry Dinnie
Nick Abrahams
February 2013
September 2014
Paul Brandling August 2015
Executive:
Darc Rasmussen October 2013
Principal Activities Integrated Research Limited’s principal activities are the design, development, implementation and sale of
systems and applications management computer software for business-critical computing, Unified
Communication networks and Payment networks.
Half-Year Results The following table summarises the key revenue, expense and profit results for the consolidated entity for the
half-year ended 31 December 2015 compared to the previous corresponding period:
In thousands of AUD 2015 2014
Change
%
Revenue from licence fees 19,527 19,724 (1%)
Revenue from maintenance fees 13,652 11,277 21%
Revenue from testing solution services 2,681 - -
Revenue from consulting 3,513 2,491 41%
Total revenue 39,373 33,492 18%
Total expenses (31,392) (24,510) 28%
Other gains and losses (currency exchange) 400 940 (57%)
Profit before tax 8,435 10,071 (16%)
Net profit after income tax 6,205 7,548 (18%)
The Company achieved revenue growth of 18% to $39.4 million resulting in profit after tax of $6.2 million and is
within the guidance provided to the Australian Stock Exchange on 13 January 2016. Licence sales of $19.5
million were flat compared to the previous strong first half of 2015; maintenance revenue was up 21% to $13.7
million and consulting revenue up 41% to $3.5 million. The Company recorded $2.7 million in Testing Solution
service revenue for the six months as a result of the recently acquired business from IQ Services. The Company’s
cost base grew by 28% to $31.4 million driven from the recent acquisition together with strategic investments in
growth made during the 2015 calendar year.
For the financial year ended 30 June 2015, as detailed in the Directors' Report for that financial year, a final
dividend of 4.0 cents per share franked at 35% was paid to the holders of fully paid ordinary shares on 22
September 2015.
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INTEGRATED RESEARCH LIMITED
HALF-YEAR ENDED 31 DECEMBER 2015
2
Directors’ Report (continued)
Review of Operations
Revenue
The Company achieved an 18% increase in revenue over the previous corresponding period to $39.4 million.
The following table presents Company revenue for each of the relevant product groups:
In thousands of AUD
2015
2014
Change
%
Unified Communications 21,337 17,009 25%
Infrastructure 11,485 11,488 0%
Payments 3,038 2,504 21%
Consulting 3,513 2,491 41%
Total revenue 39,373 33,492 18%
Expenses
The Company’s cost base grew by 28% to $31.4 million driven from the recent acquisition of the IQ
Services business together with strategic investments in growth made during the 2015 calendar year.
Overall staff numbers at 31 December 2015 were 247 compared to 215 at 31 December 2014.
The following table represents an analysis of research and development.
In thousands of AUD 2015 2014
Gross research and development spending 7,244 6,652
Capitalisation of development expenses (4,787) (4,421)
Amortisation of capitalised expenses 4,637 3,975
Net research and development expenses 7,094 6,206
Statement of Financial Position
Integrated Research Limited maintains a strong financial position with $8.0 million cash at bank as at 31
December 2015. The large increase in trade and other receivables between 30 June 2015 and 31 December
2015 was attributable to an increase in deferred payment term transactions and also the devaluation of the
Australian dollar.
Intangible assets increased by 30% to $22.1 million primarily as a result of the acquisition of the IQ Services
business assets. Current deferred consideration of $1.2 million and non-current deferred consideration of $2.7
million represents the fair value estimate of amounts due to the vendor of the IQ Services business contingent
upon certain earn-out criteria and subject to future currency exchange rate movements.
Outlook
The Company anticipates profit growth for the 2016 financial year in underlying operational performance but
reported financial performance will be influenced by fluctuations in currency exchange rates.
Interim Dividend
Directors have declared an interim dividend of 3.0 cents per share franked to 55% per share, payable on 20
April 2016 to shareholders registered at the end of trading on 9 March 2016. Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001
The lead auditor’s independence declaration is set out on page 13 and forms part of the Directors' Report for
the half-year ended 31 December 2015.
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INTEGRATED RESEARCH LIMITED
HALF-YEAR ENDED 31 DECEMBER 2015
3
Rounding off
Integrated Research Limited is of a kind referred to in ASIC Class Order 98/100 dated 10 July 1998 and in
accordance with the Class Order, amounts in the financial report and Directors’ Report have been rounded
off to the nearest thousand dollars, unless otherwise stated
Signed in accordance with a resolution of the Directors:
Dated at North Sydney this the 18th day of February 2016.
Steve Killelea Darc Rasmussen
Chairman Chief Executive Officer
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INTEGRATED RESEARCH LIMITED
HALF-YEAR ENDED 31 DECEMBER 2015
4
Condensed Consolidated Statement of Comprehensive Income For the half-year ended 31 December 2015
In thousands of AUD
Note December
2015 December
2014
Continuing Operations Revenue:
Revenue from licence fees 19,527 19,724 Revenue from maintenance fees 13,652 11,277 Revenue from testing solution services 2,681 - Revenue from consulting 3,513 2,491
Total Revenue 39,373 33,492
Expenditure:
Research and development (7,094) (6,206) Sales, consulting and marketing expenses (21,625) (15,771) General and administration expenses (2,673) (2,533)
Total expenditure (31,392) (24,510)
Other gains and losses
Currency exchange gains 400 940
Earnings before interest and tax 8,381 9,922
Interest income 54 149
Profit before tax 8,435 10,071
Income tax expense (2,230) (2,523)
Profit for the period 6,205 7,548
Other comprehensive income Items that may be reclassified subsequently to profit
Gain/(Loss) on cash flow hedges taken to equity 57 (747) Foreign exchange translation differences 256 571
Other comprehensive income for the period (net of tax) 313 (176)
Total comprehensive income for the period 6,518 7,372
Profit attributable to: Members of Integrated Research 6,205 7,548 Total comprehensive income attributable to: Members of Integrated Research 6,518 7,372 Earnings per share attributable to members of Integrated Research Basic earnings per share to ordinary equity holders (AUD cents) 3 3.65 4.46 Diluted earnings per share to ordinary equity holders (AUD cents) 3 3.62 4.45
The Condensed Consolidated Statement of Comprehensive Income is to be read in conjunction with the
accompanying notes set out on pages 8 to 11.
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INTEGRATED RESEARCH LIMITED
HALF-YEAR ENDED 31 DECEMBER 2015
5
Condensed Consolidated Statement of Financial Position For the half-year ended 31 December 2015
In thousands of AUD
Note December
2015 June 2015
Current assets
Cash and cash equivalents 7,965 15,323 Trade and other receivables 31,306 25,012 Current tax assets 308 184 Other current assets 938 1,344
Total current assets 40,517 41,863
Non-current assets
Trade and other receivables 16,784 13,260 Other financial assets 833 804 Property, plant and equipment 2,093 1,969 Deferred tax assets 1,409 1,342 Intangible assets 22,145 17,020
Total non-current assets 43,264 34,395
Total assets 83,781 76,258
Current liabilities
Trade and other payables 7,729 7,241 Deferred consideration for acquisition 4 1,233 - Provisions 2,415 2,327 Income tax liabilities 2,036 1,719 Deferred revenue 19,613 18,698 Other liabilities 411 604
Total current liabilities 33,437 30,589
Non-current liabilities
Deferred consideration for acquisition 4 2,658 - Deferred tax liabilities 4,349 4,408 Provisions 1,946 899 Deferred revenue 4,826 3,825 Other liabilities 427 405
Total non-current liabilities 14,206 9,537
Total liabilities 47,643 40,126
Net assets 36,138 36,132
Equity
Issued capital 1,667 1,667 Reserves 1,529 935 Retained earnings 32,942 33,530
Total equity attributable to members of Integrated Research 36,138 36,132
The condensed consolidated statement of financial position is to be read in conjunction with the accompanying
notes set out on pages 8 to 11.
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INTEGRATED RESEARCH LIMITED
HALF-YEAR ENDED 31 DECEMBER 2015
6
Condensed Consolidated Statement of Changes in Equity For the half-year ended 31 December 2015
In thousands of AUD
Share
Capital
Hedging
Reserve
Translation
Reserve
Employee
Benefits
Reserve
Retained
Earnings Total
Balance as at 1 July 2015 1,667 (197) (439) 1,571 33,530 36,132 Profit for the period - - - - 6,205 6,205 Other comprehensive income - 57 256 - - 313 Total comprehensive income for the period - 57 256 - 6,205 6,518
Expensed employee options and performance rights - - - 281 - 281
Payment of dividends - - - - (6,793) (6,793)
Balance at 31 December 2015 1,667 (140) (183) 1,852 32,942 36,138
Share
Capital
Hedging
Reserve
Translation
Reserve
Employee
Benefits
Reserve
Retained
Earnings Total
Balance as at 1 July 2014 1,667 120 (1,354) 873 29,441 30,747 Profit for the period - - - - 7,548 7,548 Other comprehensive income - (747) 571 - - (176) Total comprehensive income for the period - (747) 571 - 7,548 7,372
Expensed employee options and performance rights - - - 305 - 305
Payment of dividends - - - - (4,224) (4,224)
Balance at 31 December 2014 1,667 (627) (783) 1,178 32,765 34,200
The condensed consolidated statement of changes in equity is to be read in conjunction with the accompanying
notes set out on pages 8 to 11.
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INTEGRATED RESEARCH LIMITED
HALF-YEAR ENDED 31 DECEMBER 2015
7
Condensed Consolidated Statement of Cash Flows For the half-year ended 31 December 2015
In thousands of AUD
Note December
2015 December
2014
Cash flows from operating activities
Cash receipts from customers 28,774 27,640 Cash paid to suppliers and employees (21,853) (17,276)
Cash generated from operations 6,921 10,364 Income taxes paid (1,845) (535)
Net cash from operating activities 5,076 9,829
Cash flows used in investing activities
Payments for capitalised development (4,787) (4,421) Payments for property, plant and equipment (237) (686) Payment for purchase of business 4 (789) - Payments for intangible assets (146) (22) Interest received 54 149
Net cash used in investing activities (5,905) (4,980)
Cash flows used in financing activities
Payment of dividend (6,793) (4,224)
Net cash used in financing activities (6,793) (4,224)
Net (decrease)/increase in cash and cash equivalents (7,622) 625
Cash and cash equivalents at 1 July 15,323 13,300 Effects of exchange rate changes on cash 264 403
Cash and cash equivalents at 31 December 7,965 14,328
The condensed consolidated statement of cash flows is to be read in conjunction with the accompanying notes set
out on pages 8 to 11.
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Notes to the Condensed Consolidated Financial Statements For the half-year ended 31 December 2015
In thousands of AUD
Note 1. Significant accounting policies
a) Statement of Compliance
The half-year financial report is a general purpose financial report prepared in accordance with the Corporations Act
2001 and AASB 134 Interim Financial Reporting. Compliance with AASB 134 ensures compliance with International
Financial Reporting Standard IAS 34 Interim Financial Reporting. The half-year report does not include notes of the type
normally included in an annual financial report and should be read in conjunction with the most recent annual financial
report.
b) Basis of Preparation
The condensed financial report is presented in Australian dollars and is prepared on the historical cost basis, with the
exception of financial instruments for the purposes of cash flow hedges, which are at fair value. All amounts are presented
in Australian dollars unless otherwise stated.
Integrated Research Limited is a for-profit Company limited by ordinary shares.
Integrated Research Limited is of a kind referred to in ASIC Class Order (CO) 98/100 dated 10 July 1998. In accordance
with that Class Order, amounts in the financial report and Directors’ Report and the half year financial report have been
rounded off to the nearest thousand dollars, unless otherwise indicated.
The accounting policies and methods of computation adopted in the preparation of the half-year financial report are
consistent with those adopted and disclosed in Integrated Research Limited's 2015 annual financial report for the
financial year ended 30 June 2015. These accounting policies are consistent with Australian Accounting Standards and
with International Financial Reporting Standards.
c) New Accounting Standards and Interpretations
Integrated Research Limited has adopted, as of 1 July 2015, all of the new and revised standards and interpretations
issued by the AASB. The adoption of the new and revised standards and interpretations had no material impact on the
financial position or performance of Integrated Research Limited.
d) Business Combination and Goodwill
Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the
aggregate of the consideration transferred at acquisition date measured at fair value. Any contingent consideration to be
transferred by the acquirer will be recognised at fair value at the acquisition date. Changes in the fair value of the
contingent consideration are recognised in the Statement of Comprehensive Income.
Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred over the net
identifiable assets acquired and liabilities assumed. Goodwill is tested annually for impairment. Acquisition-related costs
are expensed as incurred and included in administrative expenses.
e) Revenue
The Company introduced a new line of revenue (testing solutions services) following the acquisition of the IQ Services
business. Revenue from testing solutions services is recognised over the period to which the services are provided.
There have been no other changes in accounting policy for revenue.
Note 2. Segment information
The information reported to the CODM (being the Chief Executive Officer) for the purposes of resource allocation and
assessment of performance is focused on geographical performance. The principal geographical regions are:
The Americas - operating from the United States with responsibility for the countries in North, Central and South
America;
Europe - operating from the United Kingdom with responsibility for the countries in Europe;
Asia Pacific - operating from Australia and Singapore with responsibility for the countries in the rest of the world; and
Corporate Australia - includes revenue and expenses for corporate head office, hedging and development functions of
Integrated Research Limited.
Inter-segment pricing is determined on an arm’s length basis.
Segment profit represents the profit earned by each segment without allocation of central administration costs and
Directors' salaries, investment revenue and finance costs and income tax expense. This is the measure reported to the
chief operating decision maker for the purposes of resource allocation and assessment of segment performance.
The accounting policies of the reportable segments are the same as the Group's accounting policies.
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Note 2. Segment Information (continued)
The following is an analysis of the Group's revenue and results by reportable operating segment for the periods under review.
Americas
(USD)
Europe
(UK Sterling)
In local currency3 2015 2014 2015 2014
Sales to customers outside
the consolidated entity 20,671 22,650 3,365 2,331
Inter-segment sales - - - -
Total segment revenue 20,671 22,650 3,365 2,331
Segment results 614 580 84 58
1 Corporate Australia includes research and development, hedging and corporate head office functions of Integrated Research Limited. 2 Excludes internal development costs capitalised but includes third party assets acquired. 3 Segment results represented in local currencies as reviewed by the Chief Operating Decision Maker
Note 3. Earnings per Share
Basic earnings per share
The calculation of basic earnings per share for the six months ended 31 December 2015 was based on the profit attributable
to ordinary shareholders of $6,205,000 (six months ended 31 December 2014: $7,548,000) and a weighted average number
of ordinary shares outstanding during the six months ended 31 December 2015 of 170,048,876 (six months ended 31
December 2014 of 169,149,964).
Diluted earnings per share
The calculation of diluted earnings per share for the six months ended 31 December 2015 was based on the profit
attributable to ordinary shareholders of $6,205,000 (six months ended 31 December 2014: $7,548,000) and a weighted
average number of ordinary shares outstanding during the six months ended 31 December 2015 of 171,497,433 (six months
ended 31 December 2014: 169,557,532).
Americas Europe Asia Pacific Corporate Australia1
Eliminations Consolidated
In thousands of
AUD
2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014
Continuing operations
Sales to customers outside the consolidated entity
28,750 25,730 7,152 4,256 4,066 3,935 (595) (429) - - 39,373 33,492
Inter-segment revenue - - - 18,622 18,716 (18,622) (18,716) - -
Total segment revenue 28,750 25,730 7,152 4,256 4,066 3,935 18,027 18,287 (18,622) (18,716) 39,373 33,492
Segment results 855 659 178 106 102 78 7,246 9,079 - - 8,381 9,922 Financing income (interest received) 54 149
Income tax expense (2,230) (2,523)
Profit for the half year 6,205 7,548
Capital additions2 131 514 49 72 5 3 198 119 383 708
Depreciation and amortisation expenditure
196 62 41 34 4 2 5,053 4,298 5,294 4,396
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Note 4. Business Combination
On 1st July 2015, the Company acquired the operational assets of the US based IQ Services business. The acquisition
provides the Company with a number of strategically significant growth opportunities in its existing markets and into new
allied markets. The business combination is anticipated to provide the world’s most complete view of cloud, hybrid and
traditional on premises operations for unified communications and contact centre solutions.
The acquisition has been accounted for using the acquisition method. The interim consolidated financial statements include
the results of the acquired business for the six month period from the acquisition date.
The fair values of the identifiable assets and liabilities of the acquired business on 1 July 2015 were as follows:
In thousands of AUD
Fair value
recognised on
acquisition*
Assets Prepayments 52
Property, plant and equipment 335
Capitalised development 844
Customer relationships 779
Third party software 94
2,104
Liabilities
Provisions 159
Deferred revenue 752
911
Total identifiable net assets at fair value 1,193
Goodwill arising on acquisition 3,204
Total Net Assets Acquired 4,397
Represented by:
Payment due on acquisition date 325
Deferred consideration within one year 845
Deferred consideration beyond one year 3,227
Purchase consideration 4,397
* In accordance with AASB3 Business Combinations, the Company has made provisional estimates of the fair values of
all assets acquired and liabilities assumed. The Company will finalise the measurement of these fair values by the end of
the 2016 financial year. Any adjustment to fair values is likely to have a corresponding adjustment to goodwill.
The goodwill recognised is primarily attributed to the expected synergies and other benefits from combining the assets
and activities of IQ Services with those of the Company. The goodwill is not deductible for income tax purposes.
The deferred consideration recognised at acquisition date represents Company’s estimate of the fair value of future
payments for the acquisition after taking into account the following inputs:
- an implicit finance charge to discount the obligations to net present value;
- the currency exchange rate since the obligations are due in United States dollars; and
- the probability of the vendor achieving certain earn-out targets. The deferred consideration for the earn-out
component could be up to US$3.5 million. The Company estimates that the minimum threshold targets will be
achieved in deriving the carrying value of the deferred consideration shown above.
These inputs have been updated at 31 December 2015 to reflect the deferred consideration recognised in the balance sheet
at 31 December as follows:
In thousands of AUD
Purchase
consideration
at acquisition
Cash paid
during the
period
Currency
revaluation
and finance
charges
Current/Non-
current
reclassification
Deferred
consideration
at end of
period
Payment due at acquisition 325 (325) - - -
Deferred consideration (current) 845 (464) 64 788 1,233
Deferred consideration (non-current) 3,227 - 219 (788) 2,658
4,397 (789) 283 - 3,891
Revenue from the IQ Services acquisition is recognised as testing solutions services revenue in the profit and loss account.
Testing solution services contributed $2.7 million of revenue and made a loss of $0.2 million for the six months ended 31
December 2015.
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Note 5. Employee Equity benefits
Performance Rights and Options Plan – November 2011
On 21 November 2011, the consolidated entity established performance rights and options plan. The plan enables Integrated
Research Limited to offer performance rights to eligible employees to obtain shares in Integrated Research Limited at no
cost contingent upon performance conditions being met. The performance conditions include either a service period with
performance components or a service period with a net profit after tax hurdle. The performance rights are automatically
exercised into shares upon the performance conditions being met. The following performance rights were granted during
the period:
Grant Date Number of Rights Expiry date
August 2015 94,900 September 2018
October 2015* 250,000 November 2017
December 2015 195,000 March 2019
* This is the third tranche of the original plan granted on 14 November 2013 of 850,000 rights.
The following performance rights were outstanding as at 31 December 2015:
Grant Date Number of Rights Expiry date
September 2013 165,000 October 2016
April 2014 85,000 September 2017
September 2014 760,000 October 2017
November 2014 50,000 October 2017
November 2014 495,000 September 2017
November 2014 60,000 December 2018
August 2015 94,900 September 2018
October 2015 250,000 November 2017
December 2015 195,000 March 2019
During the period, 760,000 performance rights were exercised into ordinary shares for nil consideration.
Note 6. Capital Management
On 21 December 2015, the Company established a $10 million multicurrency revolving cash advance facility. The purpose of
the facility is to fund working capital requirements and the deferred consideration for the IQ Services business acquisition.
The facility was undrawn at 31st December 2015.
Note 7. Subsequent events
On 18 February 2016 the Directors declared an interim dividend of 3.0 cents per share franked to 55%, payable on 20 April 2016
to shareholders registered at the end of trading on 9 March 2016.
There have been no other events subsequent to the interim balance sheet date, which are expected to have a material effect on the
consolidated entity’s financial position.
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Directors’ Declaration
In accordance with a resolution of the directors of Integrated Research Limited:
In the opinion of the directors:
a) The financial statements and notes of Integrated Research Limited for the half-year ended 31 December 2015 are in
accordance with the Corporations Act 2001, including:
(i) Giving a true and fair view of the consolidated entity’s financial position as at 31 December 2015 and of its performance for
the half-year ended on that date; and
(ii) Complying with Accounting Standards and the Corporations Regulations 2001
b) There are reasonable grounds to believe that Integrated Research Limited will be able to pay its debts as and when they
become due and payable.
Dated at North Sydney this 18th day of February 2016.
On behalf of the Directors
Steve Killelea Darc Rasmussen
Chairman Chief Executive Officer
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A member firm of Ernst & Young Global Limited
13
680 George Street Sydney NSW 2000 Australia GPO Box 2646 Sydney NSW 2001
Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au
Auditor’s Independence Declaration to the Directors Integrated Research Limited
As lead auditor for the review of Integrated Research Limited for the half-year ended 31 December 2015, I declare to the best of my knowledge and belief, there have been:
a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and
b) no contraventions of any applicable code of professional conduct in relation to the review. This declaration is in respect of Integrated Research Limited and the entities it controlled during the financial period.
Ernst & Young John Robinson Partner 18 February 2016
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A member firm of Ernst & Young Global Limited
14
680 George Street Sydney NSW 2000 Australia GPO Box 2646 Sydney NSW 2001
Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au
To the members of Integrated Research Limited
Report on the Half-Year Financial Report
We have reviewed the accompanying half-year financial report of Integrated Research Limited (the company), which comprises the consolidated statement of financial position as at 31 December 2015, the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flow for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration of the consolidated entity. The consolidated entity comprises the company and the entities it controlled at the half-year end or from time to time during the half-year.
Directors’ Responsibility for the Half-Year Financial Report
The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001. The directors are also responsible for such internal controls that the directors determine are necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity’s financial position as at 31 December 2015 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Integrated Research Limited and the entities it controlled during the half-year, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.
A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Independence
In conducting our review, we have complied with the independence requirements of the Corporations Act 2001. We have given to the directors of the company a written Auditor’s Independence Declaration, a copy of which is included in the Directors’ Report.
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A member firm of Ernst & Young Global Limited
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Conclusion
Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Integrated Research Limited is not in accordance with the Corporations Act 2001, including:
a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2015 and of its performance for the half-year ended on that date; and
b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.
Ernst & Young John Robinson Partner Sydney 18 February 2016
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